The World Bank in collaboration with the Islamic Development Bank Group launched a report titled “Islamic Finance: Islamic Finance - A Catalyst for Shared Prosperity?” The report highlighted that income inequality has increased considerably in the aftermath of the financial crisis of 2007-08 to the extent that one percent of global population possess almost half of the global assets. It is believed that Islamic finance – a system which is based on shared values – may help to reduce this widening gap of income inequality. This report is based on following four Islamic economic pillars:
- an institutional framework and public policy oriented to the development objectives of Islam
- prudent governance and accountable leadership
- promotion of the economic and financial system based on risk sharing; and
- financial and social inclusion for all, promoting development, growth, and shared prosperity
The key finds of this report were: Islamic finance is experiencing considerably high growth, financial institutions in different countries have intensified their efforts to strengthen the standards and regulatory frameworks and in a conducive environment Islamic finance could eradicate poverty and enhance financial inclusion.
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